National product help toy industry to grow 10% in year

Sao Paulo-the toy industry should grow around 10 percent this year, to $6.6 billion, with an increase of the participation of the national product. The increase, however, will be pulled by items with lower average prices.
Amid the biggest recession in decades in Brazil, the toy sector was one of the least suffered in relation to other industries. In 2016, amounted R $6.018 billion, representing a growth of 7% from 2015. As a comparison, between 2014 and 2015, high had been 15%.
"We have observed an intense activity of retailers in recent weeks shopping industry, creating a very positive expectations for the children''s day and Christmas," said the President of the Brazilian Association of toy manufacturers (Abrinq) Synésio Batista. According to him, the national industry should represent about 58 percent of retail purchases in 2017, a percentage that has been growing in recent years. In 2013, for example, the local toy answered by 52%. "There''s a lot of import that won''t make it to the end of the year."
The expansion of the slice of comes, in large part, the increase in the unit value of toys imported, mainly due to the devaluation of the Brazilian real since the beginning of the political and economic crisis. In addition, said Batista, local manufacturers said sales range, growth without additional elevation of prices to gain market share, even reducing the margins. "Our goal is to win in the volume" strengthens.
Price
Despite the high revenues, the industry had to reduce its prices to grow in volume. According to Abrinq, on sale when consuming end, items with prices above R $100.00 represented 12.4% of the total sales last year, compared to 19.9% in 2014, before the economic recession. "We''re not raising prices, because the fix on the values of the main inputs [plastic and wood] has been small," says Bailey, adding that about 60% of the offer is in the range of R $50.00. For the children''s day, over a thousand new toys are coming to stores-total less than the releases of the year 2012 (1,659) and 2013 (1,600).
On Xalingo manufacturer, located in Santa Cruz do Sul (RS), the slice of products priced below R $100.00 represents currently about 80% of the line produced. Between 2013 and 2014, when the economy was still warm, this ratio was approximately 60%. "We made some adjustments to reduce the price of our products or relaunching more customized, to adapt to the market. Reduce the price was an imposition of the consumer, "says sales manager of Xalingo, Alexandre Marques. According to him, the expectation of the company is a little less optimistic about the high perspective: Received the company is 5% to 10% for this year.
Mahmood emphasizes that retailers still has a stock tip, which should be reduced in the children''s day, leading to recovery for Christmas.
"We see a better sales in the Southeast, and then in the South, where apparently the consumer felt less the crisis. In the North and Northeast are below average performance, "added Mahmood.
To the Director of the Usual Plastic Toys, Marcelo Ghiraldi, the projection for sales growth this year is 15%, driven by the clients of the C and D classes. "the search for cheaper products helped us a lot," says Ghiraldi, whose factory is located in Orange Grove Paulista (SP). According to him, virtually all production is sold at prices below the R $100.00. "Even during the worst moment of the crisis people have left to buy, just reduced the amount spent," she adds.
Another factor that contributes to the growth of the company, says Ghiraldi, was the high of the dollar, which left imports less competitive. "The high dollar caught imports and we get shelf space in retail".
According to senior research analyst Euromonitor, Elton Morimitsu, consumers began to look for cheaper alternatives, avoiding more expensive products. However, he estimates that the videos games recorded positive growth rates, "influenced by the good sales performance of digital software". "Toys and games were significantly affected," he says.
According to Euromonitor''s projection, which compiles sales of toys and games to the final consumer, retail sector should earn R $16.39 billion this year, up 3.14% on 2016. While the recipe of traditional toys should rise 1%, videos games jump 7.4%.